Taxcellent’s Guide to ITR-1: Filing with Confidence and Accuracy

Income Tax Return (ITR) is a form taxpayers use to disclose their income earned and tax payable before the income tax department for every financial year.

The income Tax department has notified 7 ITR forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 to date. Every taxpayer needs to file their ITR on or before the specified due date applicable to them. The applicability of ITR forms depends on the sources of income earned by the taxpayer and the status of the taxpayer or assessee such as individuals, HUF, company, etc.

ITR-1 or SAHAJ is a form notified by the tax department used for filing income tax returns. If an individual earns income from pension/salaries, house property or from other sources (excluding betting, gambling and lotteries), such a person is eligible to file form ITR-1. In the case of resident individuals who have an agricultural income up to Rs 5000, the ITR 1 form applies to them also. To file ITR 1, one needs to keep necessary documents ready such as Form 16, investment proofs, donation receipts (if applicable), and house rent receipts (if applicable).

Who is eligible to file ITR 1

If an individual earns income up to Rs 50 lakh from the following sources: –

• Income from salary or pension.
• Income from house property (excluding cases where loss needs to be brought forward from previous years).
• Income from other sources (excluding winning from the lottery and income from racehorses).
• In the case of clubbed Income Tax Returns, the income of a spouse or a minor is included.

Aadhaar Card is required for income tax return filing: The income tax department has made it mandatory for all taxpayers to link their Aadhaar Card with their PAN on the income tax department website. If both are not linked, then the Income Tax Department will not process refunds.

Who can’t file ITR 1?

• An individual with an income exceeding Rs 50 lakh.
• An individual who is a director of a company or has held any unlisted equity shares at any time during the financial year under consideration.
• Resident not ordinarily resident (RNOR) and non-residents.
• An individual who has income through the following sources:
• More than one house property
• Lottery, racehorses, legal gambling, etc.
• Short terms capital gains & Long-term capital gains
• Agricultural income exceeding Rs 5,000.
• Income from Business and profession.
• A resident who has assets (including financial interest in any entity) outside India or is a signing authority in any account located outside India.
• Individuals claiming relief for foreign tax paid or double taxation relief under section 90/90A/91.
• Deferred income tax on ESOP received from an eligible start-up.

Documents Required to file Form ITR-1: –

• Form 16: as issued by employers for the financial year under consideration.
• Form 26AS: It is important to cross-verify the TDS(Tax Deducted at Source) appearing in Form 16 and the TDS appearing in Form 26AS.
• Receipts: If a person could not submit proof of any exemption or deduction (such as HRA allowance or Section 80C or 80D deductions) to their employer on time, then such deductions or exemptions can be claimed in the Income Tax Return.
• Credentials such as usernames & passwords
• Bank Interest certificates: Interest from bank accounts on savings bank accounts & fixed deposits.

Taxcellent assists you in filing ITR Form 1 within statutory timelines and also assists in claiming income tax refunds.